Nippon Steel Supports Usiminas’ Up Grade Plan

Nippon Steel provides full support for Usiminas’ expansion as the part of growth strategy for Nippon Steel group. The firm provides technical support to Usiminas, which shifts to higher valued steel items along with the expansion. Nippon Steel keeps studying for potential joint venture for new slab making integrated steel plant by Usiminas. Nippon Steel tries to improve Usiminas’ corporate value as one of the strategic base for the growth vision.

Vice president Kiichiroh Masuda of Nippon Steel said at press conference on Thursday Usiminas is one of the top steel makers in South America to serve high grade steel segment and plans to expand the raw steel output capacity to annual 11 million tonnes by 2011 to meet growing demand for high valued steel. He said the expansion also contributes to better corporate value for Nippon Steel. The firm sent several technical missions in earlier the year and sends 2 technical advisers since July.

Mr. Masuda explained Usiminas expands the raw steel output capacity by 2.2 million tonnes at Ipatinga works after commissioning of new blast furnace with 5,000 cubic meters of capacity in 2011, which is the largest furnace in Americas. Usiminas builds new steel making shop with 300 tonnes converter and continuous caster to make high grade steel for automobile and energy industry.

The firm also expands the rolling capacity by 1.1 million tonnes for hot strip and plate mills at Ipatinga. Mr. Masuda said the hot strip mill improves the ability to make high valued items including automobile sheet and materials for high valued pipe while the plate mill improves the ability to make high grade steel including materials for marine structure, line pipe and UOE pipe.

Usiminas builds new hot strip mill with annual 4 million tonnes of capacity at Cubatao works to produce high valued steel items for energy industry.

Unigal, which is joint venture of Usiminas and Nippon Steel, builds no.2 hot-dip galvanizing line with 400,000 tonnes capacity to meet growing demand after the joint venture expands the capacity from 400,000 tonnes to 480,000 tonnes.

Usiminas studies to build 3 million tonnes new integrated steel plant to make high valued slab. Mr. Masuda said Usiminas keeps studying the plan concluding the concrete plan including site and time frame in the year. Mr. Masuda said the site could be next Ipatinga or Cubatao, or new place. See attached table.